At this point, anyone keenly watching the budget process every year can tell you the likelihood of a continuing resolution (CR) being passed as opposed to a new budget by Oct 1st is all but guaranteed. CRs act as a temporary stopgap designed to avoid a government shutdown. However, it also locks funding to the previous fiscal year’s level and prevents new projects from getting started. Projects then remain under operations and maintenance until a new budget, with new requirements, is passed.

The One Big Beautiful Bill Act (OBBA), enacted on July 4, 2025, is a significant piece of legislation outlining President Trump's executive agenda and guiding future U.S. tax and spending policies.

On July 23, 2025, the Trump administration released an AI Action Plan, highlighting 90 federal policy directives across three key pillars: Accelerating Innovation, Building American AI Infrastructure and Leading in International Diplomacy and Security. The Plan also supports the tenants of the President’s earlier January 23, 2025, Executive Order 14179, “Removing Barriers to American Leadership in Artificial Intelligence.”

In August, the Department of the Air Force (DAF) held the annual Department of the Air Force IT Conference (DAFITC) in Montgomery, Alabama. They brought together leading voices from the U.S. Air Force, U.S. Space Force, industry and academia centered on the theme “Lethality, Readiness and Efficiency.” The event spotlighted how modern IT infrastructure, cybersecurity, data and workforce development are all coming together to shape a more agile, secure and mission-ready force.

The Department of Defense (DoD) Defense Innovation Unit (DIU) recently introduced the Digital OnRamp Platform, designed to connect private sector organizations with DoD opportunities. It’s scheduled for release in the fall of 2025, and leverages advanced AI and large language model (LLM) technologies to simplify and enhance the process of matching private sector capabilities with defense needs

The DoD is rolling out aggressive updates to its supply chain cybersecurity framework. If you sell software, services or infrastructure into the Defense Industrial Base (DIB), expect tighter requirements, faster timelines and zero tolerance for compliance gaps. These changes affect your ability to win and keep DoD contracts—especially with new programs like:

The Department of Veterans Affairs’ (VA) Office of Inspector General (OIG) released a report on July 1, 2025 announcing it found VA procured IT systems which failed to comply with legally-required accessibility standards. Specifically, of the 30 “bedrock and critical” IT systems audited by OIG as part of its report, the inspector general found only four systems that complied with Section 508 of the Rehabilitation Act.

In the administration’s first 100 days in office, multiple executive orders (EO) were signed to update federal procurement. Several initiatives released across the federal market include the OneGov Strategy, procurement consolidation and the Army Transformation Initiative.

On Thursday April 30^th, Defense Secretary Pete Hegseth released a memo for the U.S. Army to undergo a “comprehensive transformation”.

The 2025 National Association of State Chief Information Officers (NASCIO) Midyear Conference took place in Philadelphia, PA where state technology leaders shared insights into their top technology priorities for this year. Some of the key focus areas included AI with emphasis on generative AI, data management, governance and quality and cybersecurity and risk management.